Which of the following can be a barrier to entry, closing a market to new firms?
A. an elastic industry demand curve
B. ease of obtaining capital financing
C. diseconomies of scale
D. control of a vital resource by one producer
Answer: D
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Use the following graphs to answer the next question.
In the diagrams, AD1 and AS1 are the "before" curves. Assuming Q1 is full-employment output, a recession is depicted by ________.
A. panel (A) only B. panel (B) only C. panel (C) only D. panels (A) and (B)
If a price ceiling is to be effective, it should be set
A. Below the equilibrium price, and it will create a market surplus. B. Above the equilibrium price, and it will create a market shortage. C. Above the equilibrium price, and it will create a market surplus. D. Below the equilibrium price, and it will create a market shortage.
A production possibilities curve measures opportunity cost in dollar terms.
a. true b. false
A production function is a(n)
A) cost relationship. B) economic relationship. C) accounting relationship. D) technological relationship.